Top News

GM Offering Rebates on 2006 Models

After sweetening the deal for consumers with extended warranties and on-board systems upgrades, General Motors Corp. has taken a step further by offering new cash rebates on many 2006 cars and trucks.

The rebates, available as of July 6, range form $500-$1,000 on 2006 models with deductions of up to $3000 on remaining 2005 models, The Detroit News reported Friday. The rebates expire Aug. 1.

Due to inventory pile-ups and dragging sales, GM had already made employee discounts available to consumers on 2005 models with its “pay what we pay” program.

The program’s success brought a reduction in 2005 stockpiles, making it difficult for customers to find the features they wanted in a car.

With rebates and low-interest financing on 2006 models, however, those sales could still be made. But the deal is up to the customer.

For example, customers interested in the 2006 Chevrolet Impala can choose either the $1,000 rebate or 1.9 percent financing on 12- to 36-month loans. Similarly, the Pontiac Montana SV6 minivan comes with a $500 rebate or 3.9 percent financing on 12- to 36-month loans.

GM is moving away from big money rebates to steer deals toward what it calls “value pricing,” where sticker prices fall nearly to what consumers actually pay for the car.

Though GM was behind the overall market by 6.7 percent at the end of May, its U.S. sales were up 2.1 percent through June.

Negative equity on a trade-in cannot be added to the purchase price of another vehicle, the California Court of Appeals has ruled. Dealerships must disclose negative equity in writing on sales finance contracts, reported Automotive News.